TMI Blog2017 (7) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... nge price. The said shares were not much traded in the market and the Assessee had to purchase the bulk quantity of shares which was possible only from few targeted holders and not from the open market and such transaction of bulk purchases generally carry premium and the price of ₹ 10/per share was arrived at after negotiation with the sellers. The explanation is also accepted by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the order of the Commissioner (Appeals) and quashing the order of the Assessing Officer imposing penalty under Section 271 (1)(C) of the Income Tax Act. 2] Mr.Pinto, the learned counsel submits that the Tribunal was not justified in relying on the judgment of the Apex Court in the case of Reliance Petro. Products, reported in 322 ITR 158. As the facts in the present case were different and di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The reason for paying higher price for the share purchased in bulk than the stock exchange price were also explained. The said shares were not widely traded in the market and the purchase of bulk quantity of shares was possible only from a few targeted holders. 4] We have considered the submissions. Only because some addition has been made, that would not ipso facto give rise to penalty proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation with the sellers. The explanation is also accepted by the Tribunal that any attempt to purchase the shares in such bulk quantity directly from the open market could have resulted in increase in the price of shares on the stock exchange resulting into loss to the Assessee. Even the valuation report of the approved valuer was considered by the Assessee before purchase of the said shares. All ..... X X X X Extracts X X X X X X X X Extracts X X X X
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